One a revenue bright spot for ATN
ATN International, the US company that owns 51 per cent of One Communications, suffered losses in the third quarter as a result of hurricanes Irma and Maria striking the Caribbean.
The Massachusetts-based company has reported an operating loss of $19.5 million for the period, and a net loss of $24.8 million, or $1.53 per share.
However, ATN's operating income excluding hurricane-related charges for the third quarter was $17 million.
Revenue generated by ATN's Bermuda segment has been one of the bright spots for the company this year. In the first nine months of this year ATN's revenue was $373.5 million, up 14 per cent year-on-year. The increase was mostly due to revenue from ATN's share of One in Bermuda, and acquisitions in the US Virgin Islands.
For the first nine months of this year, operating income was $14.1 million, which includes $36.6 million of charges related to hurricane damage after Irma and Maria hit the US Virgin Islands in September. The storms caused significant damage to the telecoms network of Viya, a subsidiary of ATN.
Commenting on the quarterly results, Michael Prior, ATN's chief executive officer, said the company had been anticipating a year-on-year decline in its wireless revenues resulting from contractual pricing changes in its US wholesale wireless business.
It saw it wireless revenue decline as a result of the sale of its US wireless business in March. Then in September revenue declined further after the Viya network was impacted by the hurricanes in the Caribbean.
The company has been able to restore partial service across its network in the hurricane-hit region, but the widespread loss of commercial electricity continues to prevent total restoration.
Mr Prior said: “We do have insurance for named storms which compensates us for replacement costs of damaged property, extra expenses and business interruption up to a net coverage of approximately $34 million, but we believe total losses for these items will exceed this level. Additionally, from a financial reporting standpoint, we do not anticipate the positive offset from insurance proceeds to be recognised until 2018.”
ATN's third quarter revenue was $122.1 million, a 12 per cent decrease on the same period in 2016. During the quarter, the company also absorbed $4.4 million in service disruption credits to customers as a result of the hurricanes.
ATN owns telecoms services providers in the US and the Caribbean, as well as Bermuda, and solar power systems in the US and India. One, formerly known as KeyTech, offers internet, wireless and cable television services. In its third quarter results, ATN did not give specific figures for revenue attributable to One.